[Congressional Record Volume 157, Number 172 (Thursday, November 10, 2011)]
[Senate]
[Pages S7373-S7377]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. HARKIN (for himself, Mr. Casey, Mr. Tester, Mr. Brown of 
        Ohio, Mr. Leahy, Mr. Franken, Mr. Bingaman, Ms. Klobuchar, Mr. 
        Johnson of South Dakota, and Mrs. Boxer):
  S. 1850. A bill to expand and improve opportunities for beginning 
farmers and ranchers, and for other purposes; to the Committee on 
Agriculture, Nutrition, and Forestry.
  Mr. HARKIN. Mr. President, among the most hopeful occurrences in 
rural America is when someone is able to get started in farming or 
ranching and go on to build a successful operation. Typically, the 
beginning farmer or rancher is continuing an established family farm or 
ranch, although increasingly he or she is taking on the challenge of 
starting and growing an entirely new operation.
  Because farming and ranching families are so vital to rural 
communities and our Nation as a whole, there has been a great deal of 
concern for decades as America's agricultural producers have grown 
older and retired, as farm numbers fell, and as men and women who had a 
great desire to become the next generation of farmers and ranchers were 
unable to find the opportunities and resources to do so.
  Across America, we are fortunate to have many families and 
individuals who possess the ability, motivation, and dedication to 
start or continue a farm or ranch and build a rewarding life in 
agriculture. Our Nation needs more beginning farmers and ranchers 
across all types of operations--including commercial-scale crop and 
animal agriculture systems, organic agriculture, growing for local food 
systems and farmers markets, and even farming in urban and suburban 
areas. We need more beginning farmers and ranchers to secure critical 
supplies of food, fuel, and fiber for the future. We need them as 
stewards to care for and conserve our soil, water, and other natural 
resources. We need more new farming and ranching families as 
contributing members of healthy and vibrant local communities.
  Aspiring and beginning farmers and ranchers confront tremendous 
challenges, yet there are some hopeful signs. According to the Census 
of Agriculture, the number of farms in the United States increased four 
percent between 2002 and 2007. The new farms tended to be smaller, have 
lower sales, and rely more on off-farm income sources. New farmers are 
also more diverse, with significant increases between 2002 and 2007 in 
the number of farm operators who are women, Hispanic, American Indian, 
African-American, and Asian-American.
  We know from experience that carefully designed programs can very 
effectively help beginning farmers and ranchers apply their talents and 
efforts, assemble the necessary resources, capitalize upon 
opportunities, and succeed. I am proud that in the two farm bills, in 
2002 and 2008, that we enacted while I was chairman of the Agriculture, 
Nutrition, and Forestry Committee, we adopted a number of initiatives 
to strengthen and improve programs at the Department of Agriculture 
that assist beginning farmers and ranchers.
  The legislation I am introducing today, joined by a number of my 
colleagues, is crafted to extend, improve, and strengthen beginning 
farmer and rancher programs and initiatives that we adopted in the most 
recent two farm bills and in earlier farm bills and other legislation. 
The Beginning Farmer and Rancher Opportunity Act of 2011 will build 
upon the successful record of the earlier legislation and its 
implementation by the U.S. Department of Agriculture in cooperation 
with a variety of public and private institutions and organizations.
  Let me emphasize that the beginning farmer and rancher initiatives in 
the legislation we are introducing today, and the programs now being 
carried out by USDA, are not designed or intended to guarantee the 
success of any beginning farmer or rancher or to give anyone something 
for nothing. All they do is to offer a helping hand, a better 
opportunity, to women and men who make the effort and apply themselves, 
who are willing to learn and to do the necessary work to achieve their 
goals and succeed in farming and ranching.
  A key feature of the Beginning Farmer and Rancher Opportunity Act of 
2011 is to extend and strengthen the beginning farmer and rancher 
development program, which we enacted in 2008. In this program, USDA 
provides competitively-awarded grants to qualified organizations that 
deliver training and education for beginning farmers and ranchers. This 
new legislation makes it a new priority for USDA to issue grants to 
support agricultural rehabilitation and vocational training for 
military veterans and to deliver training and education to help 
veterans who are beginning farmers and ranchers. The

[[Page S7374]]

bill also would extend and increase mandatory funding for this 
development program to $25 million in each of fiscal years 2013 through 
2017.
  This legislation also strengthens in several ways the assistance USDA 
provides to enable beginning farmers and ranchers to assemble the 
financial resources they need to start and build a successful 
operation. It creates a microloan program in which young beginning 
farmers and ranchers who qualify could borrow up to $35,000 for 
operating expenses at reduced interest rates and with simplified 
paperwork. Also included in this bill is mandatory funding at $5 
million a year to carry out the individual development accounts pilot 
program that was enacted in the 2008 farm bill. Grants under this pilot 
program would support at least 15 State individual development account 
initiatives to help beginning farmers and ranchers build savings that 
can then be invested in their agricultural operations. Several other 
provisions of the bill update and improve the existing USDA programs to 
help beginning farmers and ranchers obtain loans for operating 
expenses, land purchases, and applying conservation practices.
  To encourage and assist beginning farmers and ranchers in maintaining 
and adopting sound conservation practices in their operations, the bill 
extends and strengthens several initiatives enacted in previous farm 
bills. For example, the legislation expands the options and financial 
incentives for maintaining conservation on land that comes out of the 
Conservation Reserve Program, CRP, contracts and is leased or sold to 
beginning farmers or ranchers. Other provisions increase the share of 
funds and enrollment dedicated to beginning farmers and ranchers in the 
Conservation Stewardship Program, CSP, and Environmental Quality 
Incentives Program, EQIP, strengthen help to beginning farmers and 
ranchers through the Farm and Ranch Land Protection Program, promote 
their use of whole-farm conservation planning, and boost help to them 
through conservation loans and cost-share payments.
  Other features of the bill are designed to strengthen revenue 
insurance available to beginning farmers and ranchers through USDA's 
Risk Management Agency, including increased funding to help beginning 
and socially disadvantaged farmers and ranchers better understand and 
utilize insurance programs and risk management systems. In order to 
help beginning farmers and ranchers build markets and increase income 
through adding value to their commodities, the bill enhances 
opportunities for beginning farmers and ranchers to receive USDA value-
added producer grants and provides new, increased mandatory funding for 
such grants. To strengthen USDA's attention to helping beginning 
farmers and ranchers, the legislation creates coordinators in key USDA 
agency offices in each State. It also creates a special USDA veterans 
agricultural liaison position to focus upon helping veterans understand 
and benefit from USDA programs, especially those for beginning farmers 
and ranchers.
  In conclusion, I am proud of the initiatives we have previously 
enacted to help beginning farmers and ranchers create and pursue 
opportunities and realize their goals and dreams. By building on the 
success of the existing programs, this legislation will lend more help 
to beginning farmers and ranchers and in doing so strengthen American 
agriculture, our rural communities, and our nation as a whole. I am 
grateful to the cosponsors of this bill and urge all of my colleagues 
to support it.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1850

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Beginning 
     Farmer and Rancher Opportunity Act of 2011''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                         TITLE I--CONSERVATION

                Subtitle A--Conservation Reserve Program

Sec. 101. Extension of conservation reserve program.
Sec. 102. Contracts.

                Subtitle B--Farmland Protection Program

Sec. 111. Farmland protection program.

          Subtitle C--Environmental Quality Incentives Program

Sec. 121. Establishment and administration of environmental quality 
              incentives program.
Sec. 122. Conservation innovation grants and payments.

                 Subtitle D--Funding and Administration

Sec. 131. Funding of conservation programs under Food Security Act of 
              1985.
Sec. 132. Assistance to certain farmers or ranchers for conservation 
              access.
Sec. 133. Comprehensive conservation planning.

                            TITLE II--CREDIT

                    Subtitle A--Farm Ownership Loans

Sec. 201. Direct farm ownership experience requirement.
Sec. 202. Conservation loan and loan guarantee program.
Sec. 203. Loan terms for down payment loan program.
Sec. 204. Definition of qualified beginning farmer or rancher.

                      Subtitle B--Operating Loans

Sec. 211. Young beginning farmer or rancher microloans.

                 Subtitle C--Administrative Provisions

Sec. 221. Beginning farmer and rancher individual development accounts 
              pilot program.
Sec. 222. Transition to private commercial or other sources of credit.
Sec. 223. Loan authorization levels.
Sec. 224. Direct loans for beginning farmers and ranchers.
Sec. 225. Borrower training.

                      TITLE III--RURAL DEVELOPMENT

Sec. 301. Value-added producer grants.
Sec. 302. Use of loans and grants for entrepreneurial farm enterprises.

              TITLE IV--RESEARCH, EDUCATION, AND EXTENSION

Sec. 401. Beginning farmer and rancher development program.
Sec. 402. Agriculture and Food Research Initiative.

                        TITLE V--CROP INSURANCE

Sec. 501. Sense of Congress on beginning farmer and rancher access to 
              crop and revenue insurance.
Sec. 502. Risk management partnership programs.

                        TITLE VI--MISCELLANEOUS

Sec. 601. Small and beginning farmer and rancher coordinators.
Sec. 602. Military Veterans Agricultural Liaison.
Sec. 603. Budgetary effects.
Sec. 604. Effective date.

                         TITLE I--CONSERVATION

                Subtitle A--Conservation Reserve Program

     SEC. 101. EXTENSION OF CONSERVATION RESERVE PROGRAM.

       (a) In General.--Section 1231(a) of the Food Security Act 
     of 1985 (16 U.S.C. 3831(a)) is amended by striking ``2012'' 
     and inserting ``2017''.
       (b) Land Eligible for Enrollment in Conservation Reserve.--
     Section 1231(b)(1)(B) of the Food Security Act of 1985 (16 
     U.S.C. 3831(b)(1)(B)) is amended by striking ``Food, 
     Conservation, and Energy Act of 2008'' and inserting 
     ``Beginning Farmer and Rancher Opportunity Act of 2011''.
       (c) Maximum Enrollment of Acreage in Conservation 
     Reserve.--Section 1231(d) of the Food Security Act of 1985 
     (16 U.S.C. 3831(d)) is amended--
       (1) by striking the first sentence; and
       (2) in the second sentence, by striking ``2010, 2011, and 
     2012'' and inserting ``2010 through 2017''.
       (d) Pilot Program for Enrollment of Wetland and Buffer 
     Acreage in Conservation Reserve.--Section 1231B of the Food 
     Security Act of 1985 (16 U.S.C. 3831b) is amended--
       (1) in subsection (a)(1), by striking ``2012'' and 
     inserting ``2017''; and
       (2) in subsection (b)(1)(C), by striking ``2002 through 
     2007'' and inserting ``2008 through 2012''.

     SEC. 102. CONTRACTS.

       Section 1235 of the Food Security Act of 1985 (16 U.S.C. 
     3835) is amended--
       (1) in subsection (c)(1)(B), by striking clause (iii) and 
     inserting the following:
       ``(iii) to facilitate a transition of land subject to the 
     contract from a retired or retiring owner or operator to a 
     beginning farmer or rancher, socially disadvantaged farmer or 
     rancher, or limited resource farmer or rancher who is or will 
     be actively engaged in farming or ranching with respect to 
     the land transferred under this subsection for the purpose of 
     returning some or all of the land into production using 
     sustainable grazing or crop production methods that meet or 
     exceed the resource management system quality criteria for 
     erosion, soil quality, water quality, and fish and wildlife; 
     or''; and
       (2) in subsection (f)(1)--
       (A) in the matter preceding subparagraph (A), by striking 
     ``or socially disadvantaged farmer or rancher'' and inserting 
     ``socially disadvantaged farmer or rancher, or limited 
     resource farmer or rancher who is or will be actively engaged 
     in farming or ranching with respect to the land transferred 
     under this subsection''; and
       (B) by striking subparagraphs (C), (D), and (E) and 
     inserting the following:

[[Page S7375]]

       ``(C) require the covered farmer or rancher to develop and 
     implement a comprehensive conservation plan that addresses 
     all resource concerns and meets such sustainability criteria 
     as the Secretary may establish;
       ``(D) provide to the covered farmer or rancher an 
     opportunity to enroll in the conservation stewardship program 
     or the environmental quality incentives program at any time 
     beginning on the date that is 1 year before the date of 
     termination of the contract, including technical and 
     financial assistance in the development of a comprehensive 
     conservation plan;
       ``(E) if the land transferred under this subsection remains 
     in grass cover, provide to the covered farmer or rancher an 
     opportunity to enroll in a long-term or permanent easement 
     under the grassland reserve program or farmland protection 
     program at any time beginning on the date that is 1 year 
     before the date of termination of the contact; and
       ``(F) continue to make annual payments to the retired or 
     retiring owner or operator for not more than an additional 2 
     years after the date of termination of the contract, except 
     that, in the case of a retired or retiring owner or operator 
     who is a family member (as defined in section 1001) of the 
     covered farmer or rancher, the additional payments shall be 
     made only if title to the land is sold or transferred to the 
     covered farmer or rancher on termination of the contract.''.

                Subtitle B--Farmland Protection Program

     SEC. 111. FARMLAND PROTECTION PROGRAM.

       Section 1238I of the Food Security Act of 1985 (16 U.S.C. 
     3838i) is amended--
       (1) in subsection (b), by inserting ``to promote farm 
     viability for future generations'' before the period at the 
     end; and
       (2) in subsection (g)(4)--
       (A) in subparagraph (B), by striking ``and'' at the end;
       (B) by redesignating subparagraph (C) as subparagraph (D); 
     and
       (C) by inserting after subparagraph (B) the following:
       ``(C) provide a funding priority, to the maximum extent 
     practicable, for--
       ``(i) eligible land for which there exists a farm or ranch 
     succession plan or similar plan established to create 
     opportunities for beginning farmers and ranchers and 
     encourage farm viability for future generations;
       ``(ii) easements that exercise an option to purchase at a 
     price that is equal to the agricultural use value;
       ``(iii) qualified beginning farmers or ranchers with 
     contracts to purchase the land to be protected;
       ``(iv) land owned by a nongovernmental organization that 
     will be sold to a qualified beginning farmer or rancher;
       ``(v) contemporaneous farm transfers of eligible land to 
     qualified beginning farmers and ranchers that may not occur 
     without the financial assistance of the program; and
       ``(vi) other similar mechanisms to maintain the 
     affordability of farm and ranch land for successive 
     generations of farmers and ranchers; and''.

          Subtitle C--Environmental Quality Incentives Program

     SEC. 121. ESTABLISHMENT AND ADMINISTRATION OF ENVIRONMENTAL 
                   QUALITY INCENTIVES PROGRAM.

       Section 1240B of the Food Security Act of 1985 (16 U.S.C. 
     3839aa-2) is amended--
       (1) in subsection (a), by striking ``2012'' and inserting 
     ``2017'';
       (2) in subsection (d)(4)(B), by striking ``30 percent'' and 
     inserting ``50 percent''; and
       (3) in subsection (f), by striking ``2012'' and inserting 
     ``2017''.

     SEC. 122. CONSERVATION INNOVATION GRANTS AND PAYMENTS.

       Section 1240H of the Food Security Act of 1985 (16 U.S.C. 
     3839aa-8) is amended--
       (1) in subsection (a)(2)--
       (A) in subparagraph (C), by striking ``; and'' and 
     inserting a semicolon;
       (B) in subparagraph (D), by striking the period at the end 
     and inserting ``; and''; and
       (C) by adding at the end the following:
       ``(E) provide environmental and resource conservation 
     benefits through increased participation by beginning farmers 
     and ranchers and socially disadvantaged farmers and 
     ranchers.''; and
       (2) in subsection (b)(2), by striking ``2012'' and 
     inserting ``2017''.

                 Subtitle D--Funding and Administration

     SEC. 131. FUNDING OF CONSERVATION PROGRAMS UNDER FOOD 
                   SECURITY ACT OF 1985.

       (a) In General.--Section 1241(a) of the Food Security Act 
     of 1985 (16 U.S.C. 3841(a)) is amended in the matter 
     preceding paragraph (1) by striking ``2012'' and inserting 
     ``2017''.
       (b) Conservation Reserve Program.--Section 1241(a)(1) of 
     the Food Security Act of 1985 (16 U.S.C. 3841(a)(1)) is 
     amended by striking ``2012'' each place it appears and 
     inserting ``2017''.
       (c) Environmental Quality Incentives Program.--Section 
     1241(a)(6)(E) of the Food Security Act of 1985 (16 U.S.C. 
     3841(a)(6)(E)) is amended by striking ``fiscal year 2012'' 
     and inserting ``each of fiscal years 2012 through 2017''.

     SEC. 132. ASSISTANCE TO CERTAIN FARMERS OR RANCHERS FOR 
                   CONSERVATION ACCESS.

       Section 1241(g) of the Food Security Act of 1985 (16 U.S.C. 
     3841(g)) is amended--
       (1) in paragraph (1)--
       (A) by striking ``2012'' and inserting ``2017''; and
       (B) by striking ``5 percent'' each place it appears and 
     inserting ``10 percent'';
       (2) in paragraph (2), by inserting ``(but not earlier than 
     120 days after the date that funding for the fiscal year is 
     allocated to the States)'' after ``Secretary'';
       (3) in paragraph (3), by inserting ``(but not earlier than 
     120 days after the date that acres for the fiscal year are 
     allocated to the States)'' after ``Secretary''; and
       (4) by adding at the end the following:
       ``(4) Participation by beginning and socially disadvantaged 
     farmers and ranchers.--Nothing in this subsection prohibits 
     beginning or socially disadvantaged farmers or ranchers from 
     participating in programs and receiving funding available 
     under this title that is not reserved under paragraph (1).
       ``(5) Technical assistance.--Within the funds reserved 
     under paragraph (1), the Secretary shall allocate to the 
     Natural Resources Conservation Service funding for technical 
     assistance at a rate that is not more than 10 percent higher 
     than the rate that would otherwise apply to allow the Service 
     to provide additional technical assistance to beginning 
     farmers or ranchers and socially disadvantaged farmers or 
     ranchers to establish conservation plans.''.

     SEC. 133. COMPREHENSIVE CONSERVATION PLANNING.

       Section 1244(a) of the Food Security Act of 1985 (16 U.S.C. 
     3844(a)) is amended by adding at the end the following:
       ``(3) Comprehensive conservation planning.--In carrying out 
     this subsection, the Secretary shall provide technical and 
     financial assistance using resources available under the 
     environmental quality incentives program, conservation 
     stewardship program, or such other programs as the Secretary 
     may determine to covered persons who request the assistance 
     to develop a comprehensive conservation plan for the farming 
     or ranching operation of the covered person.''.

                            TITLE II--CREDIT

                    Subtitle A--Farm Ownership Loans

     SEC. 201. DIRECT FARM OWNERSHIP EXPERIENCE REQUIREMENT.

       Section 302(b)(1) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1922(b)) is amended by striking ``3 
     years'' and inserting ``2 years''.

     SEC. 202. CONSERVATION LOAN AND LOAN GUARANTEE PROGRAM.

       Section 304 of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1924) is amended--
       (1) in subsection (c)(2)--
       (A) by striking ``shall meet'' and inserting ``shall--
       ``(A) meet'';
       (B) in subparagraph (A) (as so designated), by striking the 
     period at the end and inserting ``; and''; and
       (C) by adding at the end the following:
       ``(B) be the owner or operator of not larger than a family 
     farm.'';
       (2) in subsection (e)--
       (A) by striking ``The portion'' and inserting the 
     following:
       ``(1) In general.--Except as provided in paragraph (2), the 
     portion''; and
       (B) by adding at the end the following:
       ``(2) Beginning and socially disadvantaged farmers and 
     ranchers.--In the case of beginning farmers or ranchers and 
     socially disadvantaged farmers or ranchers, the portion of 
     the loan the Secretary may guarantee under this section shall 
     be 95 percent of the principal amount of the loan.''; and
       (3) by striking subsection (h) and inserting the following:
       ``(h) Funding.--
       ``(1) In general.--The Secretary may make or guarantee 
     loans under this section for not more than $250,000,000 for 
     each of fiscal years 2013 through 2017, of which, for each 
     fiscal year, not more than \1/2\ shall be used for direct 
     loans and not more than \1/2\ shall be used for guaranteed 
     loans.
       ``(2) Qualified beginning farmers and ranchers.--
       ``(A) Direct loans.--Of the amount made available for 
     direct loans for a fiscal year under paragraph (1), the 
     Secretary shall reserve for qualified beginning farmers and 
     ranchers until April 1 of the fiscal year not less than 50 
     percent of the amount.
       ``(B) Guaranteed loans.--Of the amount made available for 
     guaranteed loans for a fiscal year under paragraph (1), the 
     Secretary shall reserve for qualified beginning farmers and 
     ranchers until April 1 of the fiscal year not less than 50 
     percent of the amount.''.

     SEC. 203. LOAN TERMS FOR DOWN PAYMENT LOAN PROGRAM.

       Section 310E(b)(1)(C) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1935(b)(1)(C)) is amended by 
     striking ``$500,000'' and inserting ``$667,000''.

     SEC. 204. DEFINITION OF QUALIFIED BEGINNING FARMER OR 
                   RANCHER.

       Section 343(a)(11)(F) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1991(a)(11)(F)) is amended by 
     striking ``median'' and inserting ``average''.

                      Subtitle B--Operating Loans

     SEC. 211. YOUNG BEGINNING FARMER OR RANCHER MICROLOANS.

       Section 311 of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1941) is amended by adding at the end the 
     following:
       ``(d) Young Beginning Farmer or Rancher Microloans.--
       ``(1) In general.--The Secretary may make microloans under 
     this subtitle to beginning

[[Page S7376]]

     farmers or ranchers who are not less than 19 and not more 
     than 35 years of age to enable the beginning farmers or 
     ranchers to obtain flexible capital to finance operations.
       ``(2) Liability.--In the case of a microloan under this 
     subsection, the Secretary may accept the personal liability 
     of a cosigner of the promissory note in addition to the 
     personal liability of the borrower.
       ``(3) Principal balance.--The principal balance for a 
     microloan made under this subsection shall not exceed 
     $35,000.
       ``(4) Term.--Loan repayment under this subsection shall be 
     required in not less than 1 and not more than 7 years.
       ``(5) Interest rate.--The interest rate on a loan made 
     under this subsection shall not exceed the maximum interest 
     rate that may be charged low income, limited resource 
     borrowers under section 316(a)(2).
       ``(6) Borrower training.--
       ``(A) In general.--Subject to subparagraph (B), to be 
     eligible for a microloan under this subsection, the borrower 
     shall have successfully completed, or will complete within 1 
     year, borrower training described in section 359.
       ``(B) Waivers.--In carrying out subparagraph (A), the 
     Secretary shall not grant a waiver described in section 
     359(f) except in the case of a borrower who successfully 
     completed, or will complete within 1 year, an equivalent 
     training program, including programs established under 
     section 7405 of the Farm Security and Rural Investment Act of 
     2002 (7 U.S.C. 3319f), as determined by the Secretary.''.

                 Subtitle C--Administrative Provisions

     SEC. 221. BEGINNING FARMER AND RANCHER INDIVIDUAL DEVELOPMENT 
                   ACCOUNTS PILOT PROGRAM.

       Section 333B of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1983b) is amended by striking subsection (h) 
     and inserting the following:
       ``(h) Funding.--On October 1, 2012, and on each October 1 
     thereafter through October 1, 2016, of the funds of the 
     Commodity Credit Corporation, the Secretary shall use to 
     carry out this section $5,000,000, to remain available until 
     expended.''.

     SEC. 222. TRANSITION TO PRIVATE COMMERCIAL OR OTHER SOURCES 
                   OF CREDIT.

       (a) Conditions for Direct Loans.--Section 311(c) of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 
     1941(c)) is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (A), by striking the semicolon at the 
     end and inserting ``; and'';
       (B) in subparagraph (B), by striking ``; or'' at the end 
     and inserting a period; and
       (C) by striking subparagraph (C); and
       (2) by striking paragraphs (3) and (4) and inserting the 
     following:
       ``(3) Term limits.--Subject to paragraph (4), if a farmer 
     or rancher has received a direct operating loan pursuant to 
     this section in each of 9 consecutive years, the farmer or 
     rancher may not receive a direct operating loan from the 
     Secretary under this section for the next year.
       ``(4) Waivers for farm and ranch operations on tribal 
     land.--The Secretary shall waive the limitation under 
     paragraph (3) for a direct loan made under this subtitle to a 
     farmer or rancher whose farm or ranch land is subject to the 
     jurisdiction of an Indian tribe and whose loan is secured by 
     1 or more security instruments that are subject to the 
     jurisdiction of an Indian tribe if the Secretary determines 
     that commercial credit is not generally available for the 
     farm or ranch operations.''.
       (b) Limitation on Period Borrowers Are Eligible for 
     Guaranteed Assistance.--Section 319 of the Consolidated Farm 
     and Rural Development Act (7 U.S.C. 1949) is amended by 
     striking subsection (b) and inserting the following:
       ``(b) Limitation on Period Borrowers Are Eligible for 
     Guaranteed Assistance.--If a borrower has received a 
     guaranteed loan under this subtitle in each of 15 consecutive 
     years, the borrower may not receive a loan guaranteed by the 
     Secretary for the next year.''.

     SEC. 223. LOAN AUTHORIZATION LEVELS.

       Section 346(b)(1) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1994(b)(1)) is amended--
       (1) in the matter preceding subparagraph (A), by striking 
     ``$4,226,000,000 for each of fiscal years 2008 through 2012'' 
     and inserting ``$5,000,000,000 for each of fiscal years 2013 
     through 2017'' ;
       (2) in subparagraph (A)--
       (A) in the matter preceding clause (i), by striking 
     ``$1,200,000,000'' and inserting ``$2,000,000,000'';
       (B) in clause (i), by striking ``$350,000,000'' and 
     inserting ``$750,000,000''; and
       (C) in clause (ii), by striking ``$850,000,000'' and 
     inserting ``$1,250,000,000''; and
       (3) in subparagraph (B)--
       (A) in the matter preceding clause (i), by striking 
     ``$3,026,000,000'' and inserting ``$3,000,000,000'';
       (B) in clause (i), by striking ``$1,000,000,000'' and 
     inserting ``$1,500,000,000''; and
       (C) in clause (ii), by striking ``$2,026,000,000'' and 
     inserting ``$1,500,000,000''.

     SEC. 224. DIRECT LOANS FOR BEGINNING FARMERS AND RANCHERS.

       Section 346(b)(2)(A) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1994(b)(2)(A)) is amended--
       (1) in clause (i), by adding at the end the following:

       ``(III) Priority.--In order to maximize the number of 
     borrowers served under this clause, the Secretary--

       ``(aa) shall give priority to borrowers who apply under the 
     down payment loan program under section 310E or joint 
     financing arrangements under section 307(a)(3)(D); and
       ``(bb) may offer other financing options only if the 
     Secretary determines that down payment or other participation 
     loan options are not a viable approach for a particular 
     borrower.''; and
       (2) in clause (ii)(III), by striking ``each of fiscal years 
     2008 through 212'' and inserting ``fiscal year 2008 and each 
     fiscal year thereafter''.

     SEC. 225. BORROWER TRAINING.

       Section 359 of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 2006a) is amended by adding at the end the 
     following:
       ``(g) Coordination.--The Secretary shall coordinate the 
     borrower training program under this section with the 
     beginning farmer and rancher development program established 
     under section 7405 of the Farm Security and Rural Investment 
     Act of 2002 (7 U.S.C. 3319f) to ensure, to the maximum extent 
     practicable, that financial management training programs 
     funded under the beginning farmer and rancher development 
     program are designed in such a way that the financial 
     management training programs will--
       ``(1) meet borrower training requirements under this 
     section; and
       ``(2) qualify as beginning farmer and rancher development 
     program projects covered by contracts under subsection 
     (b).''.

                      TITLE III--RURAL DEVELOPMENT

     SEC. 301. VALUE-ADDED PRODUCER GRANTS.

       Section 231(b) of the Agricultural Risk Protection Act of 
     2000 (7 U.S.C. 1632a(b)) is amended--
       (1) by striking paragraph (6) and inserting the following:
       ``(6) Priority.--
       ``(A) In general.--In awarding grants under this 
     subsection, the Secretary shall give priority to projects 
     that--
       ``(i) contribute to increasing opportunities for operators 
     of small- and medium-sized farms and ranches that are 
     structured as a family farm; or
       ``(ii) have applicants at least \1/4\ of whom are beginning 
     farmers or ranchers or socially disadvantaged farmers or 
     ranchers.
       ``(B) Ranking.--In evaluating and ranking proposals under 
     this subsection, the Secretary shall provide very substantial 
     weight to the priorities described in subparagraph (A).''; 
     and
       (2) in paragraph (7)--
       (A) in subparagraph (A)--
       (i) by striking ``October 1, 2008'' and inserting ``October 
     1, 2012, and each October 1 thereafter through October 1, 
     2016''; and
       (ii) by striking ``$15,000,000'' and inserting 
     ``$30,000,000'';
       (B) in subparagraph (B), by striking ``2012'' and inserting 
     ``2017''; and
       (C) in subparagraph (C)--
       (i) in clause (i), by striking ``benefit'' and inserting 
     ``have applicants at least \1/4\ of whom are''; and
       (ii) in clause (iii), by striking ``June 30 of the fiscal 
     year'' and inserting ``the close of the annual proposal 
     review process''.

     SEC. 302. USE OF LOANS AND GRANTS FOR ENTREPRENEURIAL FARM 
                   ENTERPRISES.

       Subtitle D of the Consolidated Farm and Rural Development 
     Act is amended by inserting after section 365 (7 U.S.C. 2008) 
     the following:

     ``SEC. 366. USE OF LOANS AND GRANTS FOR ENTREPRENEURIAL FARM 
                   ENTERPRISES.

       ``(a) In General.--The Secretary shall approve grants and 
     loans under any rural development program established under 
     this title to support farm and farm-related business 
     enterprises that--
       ``(1) create new entrepreneurial employment opportunities 
     for beginning farmers and ranchers;
       ``(2) have the effect of--
       ``(A) creating new small- and medium-size family farms;
       ``(B) enhancing local and regional food systems;
       ``(C) increasing value-added production and new markets;
       ``(D) preserving farmland and rural heritage; and
       ``(E) developing strong rural economies; and
       ``(3) are consistent with the purposes of the program.
       ``(b) Limitation.--Loans or grants made under this section 
     shall not be available for annual agricultural production 
     purposes.''.

              TITLE IV--RESEARCH, EDUCATION, AND EXTENSION

     SEC. 401. BEGINNING FARMER AND RANCHER DEVELOPMENT PROGRAM.

       Section 7405 of the Farm Security and Rural Investment Act 
     of 2002 (7 U.S.C. 3319f) is amended--
       (1) in subsection (c)--
       (A) in paragraph (1)--
       (i) in subparagraph (Q), by striking ``and'' after the 
     semicolon at the end;
       (ii) by redesignating subparagraph (R) as subparagraph (S); 
     and
       (iii) by inserting after subparagraph (Q) the following:
       ``(R) agricultural rehabilitation and vocational training 
     for veterans; and'';
       (B) in paragraph (4)--
       (i) by striking ``To be eligible'' and inserting the 
     following:
       ``(A) In general.--Except as provided in subparagraph (B), 
     to be eligible''; and

[[Page S7377]]

       (ii) by adding at the end the following:
       ``(B) Exceptions.--The Secretary may waive or modify the 
     matching requirement in subparagraph (A) if the Secretary 
     determines a waiver or modification is necessary to 
     effectively reach an underserved area or population.'';
       (C) in paragraph (8)--
       (i) in subparagraph (B), by striking ``and'' after the 
     semicolon at the end;
       (ii) in subparagraph (C), by striking the period at the end 
     and inserting ``; and''; and
       (iii) by adding at the end the following:
       ``(D) military veteran beginning farmers and ranchers.''; 
     and
       (D) by adding at the end the following:
       ``(11) Indirect costs.--To help facilitate participation in 
     the program under this subsection by nongovernmental and 
     community-based nonprofit organizations, the Secretary shall 
     provide for an optional 10 percent indirect cost option in 
     lieu of a higher negotiated rate.''; and
       (2) in subsection (h)--
       (A) in paragraph (1), by striking ``sec-
     tion--''and all that follows through the period at the end 
     and inserting ``$25,000,000 for each of fiscal years 2013 
     through 2017.''; and
       (B) in paragraph (2), by striking ``2008 through 2012'' and 
     inserting ``2013 through 2017''.

     SEC. 402. AGRICULTURE AND FOOD RESEARCH INITIATIVE.

       Subsection (b) of the Competitive, Special, and Facilities 
     Research Grant Act (7 U.S.C. 450i(b)) is amended--
       (1) in paragraph (2)(F)--
       (A) by redesignating clauses (iii) through (vi) as clauses 
     (iv) through (vii), respectively; and
       (B) by inserting after clause (ii) the following:
       ``(iii) new farming opportunities, including young, 
     beginning, socially disadvantaged, and immigrant issues and 
     farm transition, farm transfer, farm entry, and beginning 
     farmer profitability issues;'';
       (2) in paragraph (7), in the matter preceding subparagraph 
     (A), by inserting ``projects (including integrated 
     projects)'' after ``education''; and
       (3) in paragraph (11)(A)--
       (A) in the matter preceding clause (i), by striking ``2008 
     through 2012'' and inserting ``2013 through 2017''; and
       (B) in clause (i), by striking ``pursuant to'' and 
     inserting ``under''.

                        TITLE V--CROP INSURANCE

     SEC. 501. SENSE OF CONGRESS ON BEGINNING FARMER AND RANCHER 
                   ACCESS TO CROP AND REVENUE INSURANCE.

       It is the sense of Congress that the Secretary of 
     Agriculture should, to the maximum extent practicable, remove 
     barriers and ensure effective access to crop and revenue 
     insurance by beginning farmers and ranchers on terms that are 
     fair and assist in the goal of increasing the number of new 
     farming and ranching opportunities.

     SEC. 502. RISK MANAGEMENT PARTNERSHIP PROGRAMS.

       Section 522 of the Federal Crop Insurance Act (7 U.S.C. 
     1522) is amended--
       (1) in subsection (d)--
       (A) in paragraph (1)--
       (i) by striking ``priority given to risk'' and inserting 
     ``priority given to--
       ``(A) risk'';
       (ii) by striking the period at the end and inserting ``; 
     and''; and
       (iii) by adding at the end the following:
       ``(B) underserved producers, including beginning farmers 
     and ranchers and socially disadvantaged farmers and 
     ranchers.'';
       (B) in paragraph (2)--
       (i) by striking ``options for producers'' and inserting 
     ``options for--
       ``(A) producers'';
       (ii) by striking the period at the end and inserting ``; 
     and''; and
       (iii) by adding at the end the following:
       ``(B) underserved producers, including beginning farmers 
     and ranchers and socially disadvantaged farmers and 
     ranchers.''; and
       (C) by adding at the end the following:
       ``(4) Requirements.--In carrying out the programs 
     established under paragraphs (2) and (3), the Secretary shall 
     place special emphasis on risk management techniques, tools, 
     and programs that are specifically targeted at--
       ``(A) beginning farmers or ranchers;
       ``(B) legal immigrant farmers or ranchers that are 
     attempting to become established agricultural producers in 
     the United States;
       ``(C) socially disadvantaged farmers or ranchers;
       ``(D) farmers or ranchers that--
       ``(i) are preparing to retire; and
       ``(ii) are using transition strategies to help new farmers 
     or ranchers get started; and
       ``(E) new or established farmers or ranchers that are 
     converting production and marketing systems to pursue new 
     markets.''; and
       (2) in subsection (e)(2)(A), by striking ``$12,500,000 for 
     fiscal year 2008'' and inserting ``$15,000,000 for fiscal 
     year 2013''.

                        TITLE VI--MISCELLANEOUS

     SEC. 601. SMALL AND BEGINNING FARMER AND RANCHER 
                   COORDINATORS.

       Section 226B of the Department of Agriculture 
     Reorganization Act of 1994 (7 U.S.C. 6934) is amended--
       (1) in subsection (c)(4), by inserting before the semicolon 
     at the end the following: ``, including review of rulemakings 
     to provide an assessment and make recommendations regarding 
     the impact of rules on small farms and ranches, beginning and 
     socially disadvantaged farmers and ranchers, and related 
     matters relevant to the structure of agriculture'';
       (2) in subsection (e)(2)--
       (A) by redesignating subparagraph (D) as subparagraph (E); 
     and
       (B) by inserting after subparagraph (C) the following:
       ``(D) State small and beginning farmer and rancher 
     coordinator.--
       ``(i) In general.--The Small Farms and Beginning Farmers 
     and Ranchers Group shall designate a State small and 
     beginning farmer and rancher coordinator from among the State 
     office employees of the Farm Service Agency, the Natural 
     Resources Conservation Service, the Risk Management Agency, 
     the Rural Business-Cooperative Service, and the Rural 
     Utilities Service.
       ``(ii) Training.--The Small Farms and Beginning Farmers and 
     Ranchers Group shall coordinate the development of a training 
     plan so that each State coordinator shall receive sufficient 
     training to have a general working knowledge of the programs 
     and services available from each agency of the Department to 
     assist small and beginning farmers and ranchers.
       ``(iii) Duties.--The coordinator shall--

       ``(I) coordinate technical assistance at the State level to 
     help small and beginning farmers and ranchers gain access to 
     programs of the Department;
       ``(II) develop and submit a State plan for approval by the 
     Small Farms and Beginning Farmers and Ranchers Group to 
     provide coordination to ensure adequate services to small and 
     beginning farmers and ranchers at all county and area offices 
     throughout the State;
       ``(III) oversee implementation of the approved State plan; 
     and
       ``(IV) work with outreach coordinators in the State offices 
     of the Farm Service Agency, the Natural Resources 
     Conservation Service, the Risk Management Agency, the Rural 
     Business-Cooperative Service, and the Rural Utilities Service 
     to ensure appropriate information about technical assistance 
     is available at outreach events and activities.''; and

       (3) in subsection (f), by striking paragraph (3); and
       (4) by adding at the end the following:
       ``(g) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as are necessary for each of fiscal years 2013 through 
     2017.''.

     SEC. 602. MILITARY VETERANS AGRICULTURAL LIAISON.

       (a) In General.--Subtitle A of the Department of 
     Agriculture Reorganization Act of 1994 is amended by 
     inserting after section 218 (7 U.S.C. 6918) the following:

     ``SEC. 219. MILITARY VETERANS AGRICULTURAL LIAISON.

       ``(a) Authorization.--The Secretary shall establish in the 
     Department the position of Military Veterans Agricultural 
     Liaison.
       ``(b) Duties.--The Military Veterans Agricultural Liaison 
     shall--
       ``(1) provide information to returning veterans about, and 
     connect returning veterans with, beginning farmer training 
     and agricultural vocational and rehabilitation programs 
     appropriate to the needs and interests of returning veterans, 
     including assisting veterans in using Federal veterans 
     educational benefits for purposes relating to beginning a 
     farming or ranching career;
       ``(2) provide information to veterans concerning the 
     availability of and eligibility requirements for 
     participation in agricultural programs, with particular 
     emphasis on beginning farmer and rancher programs;
       ``(3) serving as a resource for assisting veteran farmers 
     and ranchers, and potential farmers and ranchers, in applying 
     for participation in agricultural programs; and
       ``(4) advocating on behalf of veterans in interactions with 
     employees of the Department.''.
       (b) Conforming Amendments.--Section 296(b) of the 
     Department of Agriculture Reorganization Act of 1994 (7 
     U.S.C. 7014(b)) is amended--
       (1) in paragraph (6), by striking ``or'' after the 
     semicolon at the end;
       (2) in paragraph (7), by striking the period at the end and 
     inserting ``; or''; and
       (3) by adding at the end the following:
       ``(8) the authority of the Secretary to establish in the 
     Department the position of Military Veterans Agricultural 
     Liaison in accordance with section 219.''.

     SEC. 603. BUDGETARY EFFECTS.

       The budgetary effects of this Act, for the purpose of 
     complying with the Statutory Pay-As-You-Go-Act of 2010, shall 
     be determined by reference to the latest statement titled 
     ``Budgetary Effects of PAYGO Legislation'' for this Act, 
     submitted for printing in the Congressional Record by the 
     Chairman of the Senate Budget Committee, provided that such 
     statement has been submitted prior to the vote on passage.

     SEC. 604. EFFECTIVE DATE.

       This Act and the amendments made by this Act take effect on 
     October 1, 2012.
                                 ______